First Bank Adds New FedNow Service for Instant Payments Through SHAZAM
posted on Monday, September 18, 2023 in Company News
CLEWISTON, FL (Sept. 18, 2023) As a FedNow® pilot participant, First Bank, a community bank in Florida, is one of the first financial institutions in the U.S. to implement the Federal Reserve’s new FedNow Service for instant payments. First Bank has access to the FedNow network through SHAZAM, Inc., a national debit network and provider of core, EFT and other financial services to community financial institutions. Through the FedNow Service, and SHAZAM’s processing capabilities, First Bank will enable its customers to receive payments instantly from other FedNow participants, around the clock, with instant clearing and settlement between the sending and receiving financial institutions.
“First Bank is excited to launch this new service to our customers. It is vital to demonstrate that community banks across the nation can participate in the latest payments technology through FedNow. We are thankful for our partnership with SHAZAM and FNBB. Their mutual support for strengthening community banks is invaluable to First Bank’s ability to compete in this quickly evolving industry,” said Andrew Couse, President and COO of First Bank.
First Bank started offering instant payments to its customers in early 2021 through The Clearing House (TCH) RTP® system and SHAZAM. Now, SHAZAM is providing First Bank access to an additional instant payments method through its dedicated connection to the FedNow system. Participation in the RTP and FedNow systems extends the bank’s services to include a new set of account-based, instant payment transactions and enables them to provide more benefits to their accountholders.
“SHAZAM, as a nationwide network, understands the importance of ensuring our clients can tap into both the RTP and FedNow networks and accompanying data. This empowers clients to provide instant payments capabilities to their accountholders,” said Janet LaFrence, Faster Payments Program Manager at SHAZAM. “It’s part of how we strengthen financial institutions while serving the next generation of consumers.”
First National Bankers Bank (FNBB) provides correspondent banking services to First Bank, which allows the bank to manage interbank settlements for FedNow transactions more efficiently. As a bankers’ bank, FNBB offers an efficient way for financial institutions to monitor and manage settlements for instant payments.
“We’re honored First Bank chose FNBB to facilitate settlement of FedNow receive credit transactions for its customers. First Bank’s implementation of FedNow highlights that all community banks can utilize instant payments to help customers in our ever-changing digital world,” said Pax Mogenson, President and CEO at First National Bankers Bank.
“As an early adopter of the FedNow Service, First Bank demonstrates dedication to innovation,” said Ken Montgomery, Federal Reserve Bank of Boston first vice president and FedNow program executive. “Their leadership paves the way for industrywide progress, setting an example for others wanting to play a role in supporting a modernized U.S. payment infrastructure.”
About First Bank
First Bank is a community bank in Southwest Florida, with 7 locations in Hendry, Glades, Lee, Palm Beach, and Collier counties. We have been meeting the financial needs of the residents and businesses of Southwest Florida since 1922. We help our communities to flourish through our excellent service & community-based approach to banking. Additional information can be found at first1bank.com.
SHAZAM is the only nationwide independent, member-owned debit network, processor and core provider supporting financial institutions. Since we don’t answer to shareholders, we can reinvest profits in technologies our clients need as they serve the next generation of consumers. SHAZAM ensures our clients have the products and services they demand and expect in a cost-effective way. Founded in 1976 and headquartered in Iowa, we’re a leader in payments and financial technology, with a simple mission: Strengthening financial institutions. Visit us today at shazam.net.
About First National Bankers Bank
First National Bankers Bank, the banking subsidiary of First National Bankers Bankshares, Inc., serves the correspondent banking needs of community financial institutions in more than 30 states across the country. FNBB opened in July 1984, and remains a non-competitive partner providing leading-edge services that facilitates the growth and success of our shareholders and customers. FNBB is headquartered in Baton Rouge, Louisiana and has offices in Birmingham, Alabama, Little Rock, Arkansas, Lake Mary, Florida, Ridgeland, Mississippi, Shreveport, Louisiana and Memphis, Tennessee. For more information, visit bankers-bank.com.
About the FedNow Service
The Federal Reserve Banks developed the FedNow Service to facilitate nationwide reach of instant payment services by financial institutions — regardless of size or geographic location — around the clock, every day of the year. Through financial institutions participating in the FedNow Service, businesses and individuals can send and receive instant payments at any time of day, and recipients have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Access is provided through the Federal Reserve’s FedLine® network, which serves more than 10,000 financial institutions directly or through their agents. For more information, visit FedNowExplorer.org (Off-site).
Crista Herbert, Sr. Public Relations Specialist
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